Locking in High Dividend Yield Before These 3 REITs See Big Price Jump

When choosing stocks in the same sector, investors often compare fundamentals such as price-to-earnings (P/E) or earnings per share (EPS) ratios, balance sheets and other metrics.

But it’s also important for investors to compare a stock’s relative strength to its peers in that sector. In other words, investors also want to consider stocks that have been outperforming other similar stocks recently, as these are the stocks that institutions are buying and tend to continue to perform well.

Last week a two-day rally was set to begin in October after a long slump in real estate investment trust (REIT) stocks in September. Using the parameters of REITs priced at $7 or higher and with a minimum dividend of 3.5%, here are three REITs that performed the best over the five-day period from September 28th to October 4th.

While there may still be some rough times ahead, investors may want to consider locking in these high-dividend yields before these REITs see a big price jump.

Mac Eirich Co. (NYSE: MAC) is a Santa Monica, California-based retail REIT specializing in the acquisition, leasing and management of malls. It operates 44 regional centers across the US

The 52-week price range is $7.40 to $22.88. From September 28 to October 4, Macerich was up 6.87%, perhaps an indication of more appreciation to follow.

The annual dividend of 60 cents per share yields 7.1%. Macerich cut its dividend significantly in early 2020 when the COVID-19 pandemic took hold but has since paid a consistent quarterly dividend of 15 cents. The funds from operation (FFO) of $1.63 are more than sufficient for the payout, and there is enough room for dividend growth.

Uniti Group Inc. (NASDAQ: UNIT) is a Little Rock, Arkansas-based REIT that acquires and builds mission-critical communications infrastructure in the form of fiber optics. Uniti Group owns and operates 129,000 miles of fiber routes covering 270,000 buildings in the US

Uniti Group’s 52-week price range was $6.66 to $14.60, and the low rate came during the last week of September. However, in the recent five-day period, Uniti rose strongly to move higher by 10.9%.

The 60-cent annual dividend has increased 150% over the past five years, and with the 45% selloff in the stock price since March, the yield has now increased to 8.2%. It appears that traders are trying to bottom out on Uniti Group stock, and better times could be ahead for this REIT.

Tanger Factory Outlet Centers Inc. (NYSE: SKT) is a Greensboro, North Carolina-based REIT that owns and manages 38 open-air upscale outlet malls across 20 states and Canada. It leases to over 500 well-known companies, including Saks Fifth Avenue, Coach New York, Vera Bradley Designs Inc. and Kate Spade New York.

Tanger Factory Outlet Centers cut its dividend from $0.358 to $0.178 in January 2021 but has since doubled the dividend. Its 80-cent annual dividend now yields 5.4%. The FFO is $1.47 per share, so there is plenty of room for future dividend increases.

The 52-week range is $13.26 to $22.51, and the stock only touched its low a week ago. However, Tanger Factory Outlets gained a solid 7.28% during the recent five-day period and could be poised for a solid rebound after losing 32% since last November.

Read on: This Little-Known REIT Has Produced Double Annual Returns Over the Last Five Years

Today’s Private Market Insights:

Diversified RAD RAD REIT has a declared dividend yield of 8%. The REIT has averaged 27% annualized gains since inception.

QC capital launched its latest real estate fund with a target annual return of 15% to 19%

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